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Budgeting & Forecasting › The Master Budget

How do you flex or revise the master budget during the year?

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Answer

The master budget can be revised through reforecasting (updating for actuals and new expectations, often via rolling forecasts) or by flexing for volume in control reports. Formal revision is used when assumptions change materially; otherwise, the original budget is retained for accountability while forecasts track the likely outcome.
Real-world example After a major contract win, the team reforecasts the master budget while keeping the original for variance reporting.

Common follow-ups: When do you formally revise vs reforecast? | Why keep the original budget?

Rolling Forecasts Variance Analysis The Master Budget
All 34 The Master Budget questions